DRAFT OPINION. EN United in diversity EN. European Parliament 2018/0247(COD) of the Committee on Budgets
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1 European Parliament Committee on Budgets 2018/0247(COD) DRAFT OPINION of the Committee on Budgets for the Committee on Foreign Affairs on the proposal for a regulation of the European Parliament and of the Council establishing the Instrument for Pre-accession Assistance (IPA III) (COM(2018)0465 C8-0274/ /0247(COD)) Rapporteur for opinion: Ivana Maletić PA\ docx PE v01-00 United in diversity
2 PA_Legam PE v /12 PA\ docx
3 SHORT JUSTIFICATION IPA has important role in enlargement as a main instrument for preparation of the candidates and potential candidates for negotiation process and full membership. The enlargement process strengthens peace, democracy and stability in Europe and allows the Union to be better positioned to address global challenges. IPA is positioned in the EU budget as a key component of the external action policy and should be closely linked to other external action programmes. In addition, consistency with other relevant Union policies and programmes must be ensured. New challenges such as migration, security, protection of the environment and climate change are taken on board in IPA III and therefore the rapporteur supports the European Commission proposal to allocate 1,2 times more funds to the new IPA in comparison with IPA II in current MFF Rapporteur emphasizes the importance of strategic programming and performance measurement in IPA III as well as need for more flexibility in responding to unforeseeable challenges and crises. IPA II contributed to the implementation of reforms in key areas, such as the judiciary, anticorruption, public administration and social inclusion, and supported the progressive alignment with EU legislation and standards, and with IPA III more support is needed to strengthened focus on economic development and improved competitiveness and the strengthening of democratic institutions and public administration reform. The Commission should take appropriate actions to accelerate absorption of the IPA funds, in particular in the early years, to prevent structural backlogs in contracting and payments. The overall architecture of the instruments and administrative and financial procedures should be simplified and, more technical assistance provided to support capacity building, project preparation, contracting and implementation. The rapporteur stresses the importance of coherence and complementarity between the internal and external policies of the Union, as well as between the external instruments themselves, for providing synergies and high EU added value. AMDMTS The Committee on Budgets calls on the Committee on Foreign Affairs, as the committee responsible, to take into account the following amendments: 1 Recital 7 (7) Assistance should also be provided in compliance with the agreements concluded by the Union with the (7) Assistance should also be provided in compliance with the agreements concluded by the Union with the PA\ docx 3/12 PE v01-00
4 beneficiaries listed in Annex I. Assistance should mainly focus on assisting the beneficiaries listed in Annex I to strengthen democratic institutions and the rule of law, reform the judiciary and public administration, respect fundamental rights and promote gender equality, tolerance, social inclusion and non-discrimination. Assistance should also support the key principles and rights as defined in the European Pillar of Social Rights. 17 Assistance should continue to support their efforts to advance regional, macro-regional and cross-border cooperation as well as territorial development, including through implementation of Union macro-regional strategies. It should also enhance their economic and social development and economic governance, underpinning a smart, sustainable and inclusive growth agenda, including through implementation of regional development, agriculture and rural development, social and employment policies and the development of the digital economy and society, also in line with the flagship initiative Digital Agenda for the Western Balkans. 17 European Pillar of Social Rights solemnly proclaimed by the European Parliament, the Council and the Commission at the Gothenburg Social Summit for Fair Jobs and Growth, Gothenburg 17 November beneficiaries listed in Annex I. Assistance should mainly focus on assisting the beneficiaries listed in Annex I to strengthen democratic institutions and the rule of law, reform the judiciary and public administration, respect fundamental rights and promote gender equality, tolerance, social inclusion and non-discrimination. Assistance should also support the key principles and rights as defined in the European Pillar of Social Rights. 17 Assistance should continue to support their efforts to advance regional, macro-regional and cross-border cooperation as well as territorial development, including through implementation of Union macro-regional strategies with the aim to overcome geographical and cultural barriers, develop good neighbourly relations and reach reconciliation. It should also enhance their economic and social development and economic governance, underpinning a smart, sustainable and inclusive growth agenda, including through implementation of regional development, agriculture and rural development, social and employment policies and the development of the digital economy and society, also in line with the flagship initiative Digital Agenda for the Western Balkans 17 European Pillar of Social Rights solemnly proclaimed by the European Parliament, the Council and the Commission at the Gothenburg Social Summit for Fair Jobs and Growth, Gothenburg 17 November Recital 13 PE v /12 PA\ docx
5 (13) The beneficiaries listed in Annex I need to be better prepared to address global challenges, such as sustainable development and climate change, and align with the Union's efforts to address those issues. Reflecting the importance of tackling climate change in line with the Union's commitments to implement the Paris Agreement and the Sustainable Development Goals (SDGs), this Programme should contribute to mainstream climate action in the Union's policies and to the achievement of an overall target of 25 % of the EU budget expenditures supporting climate objectives. Actions under this Programme are expected to contribute 16 % of the overall financial envelope of the Programme to climate objectives. Relevant actions will be identified during the Programme's preparation and implementation, and the overall contribution from this Programme should be part of relevant evaluations and review processes. (13) The beneficiaries listed in Annex I need to be better prepared to address global challenges, such as sustainable development and climate change, and align with the Union's efforts to address those issues. Reflecting the importance of tackling climate change in line with the Union's commitments to implement the Paris Agreement and the Sustainable Development Goals (SDGs), this Programme should contribute to mainstream climate action in the Union's policies and to the achievement of an overall target of 25 % of the EU budget expenditures supporting climate objectives. Actions under this Programme are expected to contribute 16 % of the overall financial envelope of the Programme to climate objectives. In the case of crossborder pollution, priority of IPA spending should be given to preparation and implementation of the projects which will eliminate cross-border pollution. Relevant actions will be identified during the Programme's preparation and implementation, and the overall contribution from this Programme should be part of relevant evaluations and review processes. 3 Recital 16 (16) The Commission and the Member States should ensure compliance, coherence, and complementarity of their assistance, in particular through regular consultations and frequent exchanges of (16) The Commission and the Member States should ensure compliance, coherence, and complementarity of their assistance, in particular through regular consultations and frequent exchanges of PA\ docx 5/12 PE v01-00
6 information during the different phases of the assistance cycle. The necessary steps should also be taken to ensure better coordination and complementarity, including through regular consultations, with other donors. The role of civil society should be enhanced both in programmes implemented through government bodies and as a direct beneficiary of Union assistance. information during the different phases of the assistance cycle. The necessary steps should also be taken to ensure better coordination and complementarity, including through regular consultations, with other donors. The assistance should set out to ensure alignment with the Union strategy for smart, sustainable and inclusive growth, arrangements for the partnership principle and an integrated approach to territorial development. The role of civil society should be enhanced both in programmes implemented through government bodies and as a direct beneficiary of Union assistance. 4 Recital 18 (18) It is in the Union's interest to assist the beneficiaries listed in Annex I in their efforts to reform with a view to Union membership. Assistance should be managed with a strong focus on results and with incentives for those who demonstrate their commitment to reform through efficient implementation of pre-accession assistance and progress towards meeting the membership criteria. (18) It is in the Union's interest to assist the beneficiaries listed in Annex I in their efforts to reform with a view to Union membership. Assistance should be managed with a strong focus on results and with incentives for more effective and efficient use of funds for those who demonstrate their commitment to reform through efficient implementation of preaccession assistance and progress towards meeting the membership criteria, achieving positive changes in their socio-economic environment and response to current challenges. PE v /12 PA\ docx
7 5 Recital 19 a (new) (19 a) Implementation should be accelerated and the Commission should provide technical assistance to the beneficiaries for establishing sound financial management and control system and capacity building for preparation of project pipelines, for contracting and monitoring procedures and for implementation of the structural reforms which will support achievement of the goals and performance of IPA. 6 Recital 20 (20) The Union should seek the most efficient use of available resources in order to optimise the impact of its external action. That should be achieved through coherence and complementarity among the Union's external financing instruments, as well as the creation of synergies with other Union policies and programmes. This includes, where relevant, coherence and complementarity with macro-financial assistance. (20) The Union should seek the most efficient use of available resources in order to optimise the impact of its external action, while avoiding double targeting and overlapping. That should be achieved through consistency, strong coherence and complementarity among the Union's external financing instruments, as well as the creation of synergies with other Union policies and external actions, funding resources and programmes. This includes, where relevant, coherence and complementarity with macro-financial assistance. PA\ docx 7/12 PE v01-00
8 7 Recital 26 (26) External actions are often implemented in a highly volatile environment requiring a continuous and rapid adaptation to the evolving needs of Union partners and to global challenges such as human rights, democracy and good governance, security and stability, climate change and environment and irregular migration and its root causes. Reconciling the principle of predictability with the need to react rapidly to new needs consequently means adapting the financial implementation of the programmes. To increase the ability of the Union to respond to unforeseen needs, while respecting the principle that the Union budget is set annually, this Regulation should preserve the possibility to apply the flexibilities already allowed by the Financial Regulation for other policies, namely carry-overs and re-commitments of committed funds, to ensure an efficient use of the EU funds both for the EU citizens and the beneficiaries listed in Annex I, thus maximising the EU funds available for the EU external action interventions. (26) External actions are often implemented in a highly volatile environment requiring a continuous and rapid adaptation to the evolving needs of Union partners and to global challenges such as human rights, democracy and good governance, security and stability, climate change and environment and irregular migration and its root causes. Reconciling the principle of predictability with the need to react rapidly to new needs consequently means adapting the financial implementation of the programmes. To increase the ability of the Union to respond to unforeseen needs, while respecting the principle that the Union budget is set annually, this Regulation should preserve the possibility to apply the flexibilities already allowed by the Financial Regulation for other policies, namely carry-overs and re-commitments of committed funds, to ensure an efficient use of the EU funds both for the EU citizens and the beneficiaries listed in Annex I, thus maximising the EU funds available for the EU external action interventions. Additional forms of flexibility should be allowed such as reallocation among priorities, phasing projects and overcontracting. 8 Article 3 paragraph 2 point d PE v /12 PA\ docx
9 (d) To strengthen economic and social development including through increased connectivity and regional development, agriculture and rural development and social and employment policies, to reinforce environmental protection, increase resilience to climate change, accelerate the shift towards a low-carbon economy and develop the digital economy and society. (d) To strengthen economic and social development and competitiveness through increased connectivity and regional development, agriculture and rural development and social and employment policies, to reinforce environmental protection, increase resilience to climate change, accelerate the shift towards a lowcarbon economy, develop the digital economy and society, improve business and investment climate, encourage smart specialisation, skills development, research and innovation and create job opportunities in particular for the youth. 9 Article 4 paragraph 1 1. The financial envelope for the implementation of IPA III for the period shall be EUR in current prices. 1. The financial envelope for the implementation of IPA III for the period shall be EUR in 2018 prices (EUR in current prices). 10 Article 4 paragraph 2 2. The amount referred to in paragraph 1 may be used for technical and administrative assistance for the 2. The amount referred to in paragraph 1 may be used for technical and administrative assistance for the PA\ docx 9/12 PE v01-00
10 implementation of the Programme, such as preparatory, monitoring, control, audit and evaluation activities including corporate information technology systems and any activities related to the preparation of the successor programme for pre-accession assistance, in accordance with Article 20 of [NDICI Regulation]. implementation of the Programme, such as preparatory (assistance for project preparation and appraisal), support for institutional strengthening and administrative capacity-building for the effective management, monitoring, control, audit and evaluation activities including corporate information technology systems and any activities related to the preparation of the successor programme for pre-accession assistance, in accordance with Article 20 of [NDICI Regulation]. 11 Article 6 paragraph 2 2. Programmes and actions under this Regulation shall mainstream climate change, environmental protection and gender equality and shall, where applicable, address interlinkages between Sustainable Development Goals 34, to promote integrated actions that can create co-benefits and meet multiple objectives in a coherent way ainable-development-goals_en 2. Programmes and actions under this Regulation shall mainstream climate change, environmental protection and gender equality and shall, where applicable, address interlinkages between Sustainable Development Goals 34, to promote integrated actions that can create co-benefits and meet multiple objectives in a coherent way. In the case of crossborder pollution priority for IPA spending must be given for preparation and implementation of the projects which will eliminate cross-border pollution ainable-development-goals_en PE v /12 PA\ docx
11 12 Article 6 paragraph 3 3. The Commission and the Member States shall cooperate in ensuring coherence and shall strive to avoid duplication between assistance provided under IPA III and other assistance provided by the Union, the Member States and the European Investment Bank, in line with the established principles for strengthening operational coordination in the field of external assistance, and for the harmonisation of policies and procedures, in particular the international principles on development effectiveness. 35 Coordination shall involve regular consultations, frequent exchanges of information during the different phases of the assistance cycle and inclusive meetings aimed at coordinating the assistance and shall constitute a key step in the programming processes of the Union and the Member States The Commission and the Member States shall cooperate in ensuring coherence and shall strive to avoid duplication between assistance provided under IPA III and other assistance provided by the Union, the Member States and the European Investment Bank, in line with the established principles for strengthening operational coordination in the field of external assistance, and for the harmonisation of policies and procedures, in particular the international principles on development effectiveness. 35 Coordination shall involve regular consultations, frequent exchanges of information during the different phases of the assistance cycle and inclusive meetings aimed at coordinating the assistance and shall constitute a key step in the programming processes of the Union and the Member States. The assistance should set out to ensure alignment with the Union strategy for smart, sustainable and inclusive growth, effective and efficient implementation of the funds, arrangements for the partnership principle and an integrated approach to territorial development Article 7 paragraph 2 subparagraph 2 PA\ docx 11/12 PE v01-00
12 Assistance shall be targeted and adjusted to the specific situation of the beneficiaries listed in Annex I, taking into account further efforts needed to meet the membership criteria as well as the capacities of those beneficiaries. Assistance shall be differentiated in scope and intensity according to needs, commitment to reforms and progress in implementing those reforms. Assistance shall be targeted and adjusted to the specific situation of the beneficiaries listed in Annex I, taking into account further efforts needed to meet the membership criteria as well as the capacities of those beneficiaries. Assistance shall be differentiated in scope and intensity according to needs, commitment to reforms, progress in implementing those reforms and results achieved in fulfilling the accession criteria, positive changes in the socioeconomic environment and the response to current challenges. PE v /12 PA\ docx
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